Crowdfunding Platform Kickstarter Will Shift to Blockchain-Based Model

Kickstarter, one of the leading crowdfunding platforms on the market, has decided to abandon its current business model and migrate to a blockchain-based platform. This will be built by an independent organization funded initially by Kickstarter to work on the protocol. The new platform will be built on top of the Celo blockchain.

Kick-Starting a Blockchain Replacement

Kickstarter, a crowdfunding platform for products, services, and ideas, announced yesterday it will shift its operations to a blockchain-based platform. The platform made the announcement in a blog post titled “The Future of Crowdfunding Creative Projects,” where it mentioned decentralization as one of the key reasons for the pivot. According to Kickstarter:

[The platform will] be available for collaborators, independent contributors, and even Kickstarter competitors, from all over the world to build upon, connect to, or use.

The newly designed platform will also be open-source, so other similar projects will be able to fork it and use it for different goals, bringing this solution to the whole developer community; this means the community will have tools to create crowdfunding sites with no intermediation. The company further explained that a whitepaper for the new organization will be released in the coming weeks. Other big companies recently are also including blockchain elements in their developments.

New Platform and Governance

The Kickstarter team believes their crowdfunding expertise will allow them to produce a blockchain-based protocol to better suit their needs. The new protocol will be created by an independent organization financed initially by Kickstarter. Kickstarter will also create a Governance Lab, that will be in charge of supervising the methods of governance for the protocol. This lab will undertake research and issue communications about the best ways to govern the new protocol using blockchain tools, including DAOs.

The crowdfunding protocol will be deployed on top of Celo, a smart contracts-enabled, “carbon-negative” blockchain (due to its proof-of-stake consensus algorithm). Kickstarter elaborated that Celo will minimize the environmental impact of the protocol. Celo’s price also benefited from the revelation, rising to $4.48 after the announcement. The price has since dipped to $3.93 moving alongside bitcoin, ethereum, and most cryptocurrencies, which are currently posting losses.

However, some users have been very vocal on social media about their dislike for this decision, stating they are not aware of the benefits such a change could bring to the platform, and criticizing the possible environmental effects.

What do you think about Kickstarter pivoting to blockchain? Tell us in the comments section below.

Kickstarter plans to migrate to platform built on Celo blockchain

“We are entering a significant moment for alternative governance models, and we think there’s an important opportunity to advance these efforts using the blockchain,” said Kickstarter CEO Aziz Hasan and co-founder Perry Chen.

Crowdfunding platform Kickstarter will be launching a new company that will eventually see its website move to a blockchain-based system on Celo. 

In a Wednesday blog post, CEO Aziz Hasan and co-founder Perry Chen said Kickstarter would be developing an open-source protocol that will live on the Celo blockchain. The two execs cited the blockchain’s efforts in minimizing its environmental impact — being carbon negative — in addition to the fact it was open source.

“We are entering a significant moment for alternative governance models, and we think there’s an important opportunity to advance these efforts using the blockchain,” said Chen and Hasan.

Bloomberg reported that Kickstarter planned to transition its website to the blockchain platform in 2022, with the project announcing it would release a white paper “in the coming weeks.” Kickstarter reportedly said the migration will not affect any of the millions of users currently using the platform to crowdfund for projects including medical and fitness products, artwork, books, and movies.

In addition, Kickstarter said it planned to establish a governance lab “overseeing the development of the protocol governance.” Purpose Foundation executive director and co-founder Camille Canon will be leading the effort.

Related: A Community-Governed DeFi Platform Makes Crowdfunding Decentralized

With the emerging crypto space, certain projects that might have received money through Kickstarter have shifted to distributed autonomous organizations. In November, a group called ConstitutionDAO attempted to purchase a first edition print copy of the U.S. Constitution, in which 17,437 backers were issued governance tokens called PEOPLE. Though the DAO failed to make the winning bid, its token price surged after the team behind the project allowed users to continue holding the tokens.

First launched in 2009, Kickstarter reported 21 million people have pledged more than $6 billion to back 213,034 projects using the crowdfunding platform, including the Peloton bike and the 2014 movie Veronica Mars.